i
ii
iii
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or concerning the delimitation of its frontiers or boundaries.
iv
Understanding Every Step of Cross-Border
E-Commerce: Exporting Electronic Products from
China to Malaysia
Copyright ©ESCAP 2024
All rights reserved.
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The designations employed and the presentation of the material in this publication do not imply the expression
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v
Acknowledgements
Mr. Tengfei Wang, Economic Affairs Officer from the United Nations Economic and Social Commission for Asia
and the Pacific (ESCAP) supervised the work. Mr. Jiang Wang, Professor, University of International Business
and Economics, China, collected data and carried out the study. Mr. Yann Duval, Chief, Trade Policy and
Facilitation Section of ESCAP provided general guidance. Mr. Elliot Carpenter, during his internship, provided
search support to the study. Furthermore, he edited and formatted the report. Ms. Kayan Lee also provided
useful input to this report during her internship with ESCAP. Ms. Natnicha Sutthivana provided useful advice on
formatting this report.
The report was part of implementing a FEALAC project titled "Support the strengthening of policies to monitor
and promote the participation of MSMEs in cross-border goods and services in e-commerce for an inclusive
and sustainable pandemic response and recovery in East Asia and Latin America".
vi
Executive Summary
Cross-border e-commerce allows small- and medium-sized enterprises (SMEs) worldwide to directly sell their
products to overseas consumers through cross-border e-commerce platforms. This has opened up trade
opportunities for SMEs globally. However, the procedures for cross-border e-commerce can be complicated,
and there is a scarcity of existing studies documenting such procedures.
To gain deeper insights into the intricacies of cross-border e-commerce trade procedures, this report delves
into the processes involved in exporting consumer electronic products from China to Malaysia, primarily under
a business-to-consumer (B2C) model. A detailed analysis of each procedure of cross-border e-commerce using
Business Process Analysis (BPA) reveals that 12 distinct procedures and 13 stakeholders are integral to the
process. While this case study may not cover all potential scenarios of cross-border e-commerce, it effectively
illustrates the inherent complexity of such transactions. The key findings of this report are outlined below.
Getting certified product qualification locally in the country where goods are sold is a challenging task for sellers
of cross-border e-commerce. This is because it involves a complex product certification process. In particular,
sellers are not familiar with the product certification process in the importing country. Even understanding which
products need to be certified is not always understood. The certification process may also be carried out through
third-party service providers, which may involve relatively expensive costs. Therefore, cross-border e-
commerce sellers should make a detailed description of their products. In countries where product certification
is more stringent, sellers may have to take a cautious approach to selling their products. Due to the inability to
adapt to the local market situation, it is likely that consumers will return products due to various problems with
customs clearance and the use of goods. The role of the platform is also crucial in the process of product launch.
This is because the platform has access to timely information about the various compliance issues that different
types of products may encounter when sold locally in the importing country. Platforms can help buyers to
understand in advance the various issues that may arise when importing certain goods from overseas, and can
be equally useful to sellers in making proper descriptions and compliance checks when they put their products
on store shelves.
Typically, cross-border e-commerce sales are primarily facilitated through the cross-border delivery of small
packages of goods to overseas consumers. This is very different from traditional international trade. Sellers ship
and deliver goods overseas with different arrangements depending on the situation. However, small parcel
goods sent to different countries may also have large differences in shipping costs, and express delivery
services may also vary greatly in different countries. Therefore, while there are many international logistics line
services from China to Malaysia, and other Southeast Asian countries. These international logistics lines
specialize in serving Chinese cross-border e-commerce sellers, and the goods are delivered to logistics line
carriers, which can be delivered directly to overseas final consumers. Often the logistics line carriers for cross-
border e-commerce will also undertake two-way import and export customs clearance and tariff advances, and
the international dedicated logistics carriers can also integrate postal and courier services in both the exporting
vii
and importing countries. The cargo flow steps and procedures are a process that can be optimized, which also
brings some convenience to sellers and buyers. It is suggested that cross-border e-commerce sellers can
explore more efficient and optimized trade processes and cargo delivery methods here. Government trade
regulators should also support these optimization methods.
The main role of cross-border e-commerce platforms is to provide information aggregation and integration.
Connectivity and interoperability between the information systems of Chinese trade regulators is, for the most
part, unlikely. This is because there are always security concerns and conflicting interests between
administrations. Yet the integration of information on the platform can maximize process optimization and even
change and save many processes that are complex and repetitive. Platforms for integrated cross-border e-
commerce services can provide integration of information between various regulatory authorities, for example,
a one-time data submission through a third-party service platform can fulfill the compliance requirements of the
customs of the exporting country. Therefore, it is not just a matter of innovating business and regulatory
processes, but of exploring new business models and how to realize a PPP (public-private partnership) model
of cooperation. Even though China has a more comprehensive approach to cross-border e-commerce policy
and regulation, at the operational level, there is still a need for synergy between various departments, as well
as a need for more stable operational processes.
Customs clearance of small parcels has always been a challenging task for customs. The number of parcel
shipments is large, and it is not easy to inspect all incoming goods. The cost of government regulation is also
high. Although dedicated logistics operators have optimized their international logistics costs relatively well, the
transparency and compliance of import customs clearance for small parcels still deserves further discussion. It
is recommended that Customs adopt more technological means, such as advanced customs clearance,
electronic customs declaration, big data, and artificial intelligence. It is also recommended that government
supervision be embedded in the business process.
Returns have always been a challenging and troublesome process for cross-border e-commerce. Because
goods are involved in cross-border delivery processes, some goods are involved in customs tax payment or tax
refund processes. This aspect of the return and exchange process has been explored by cross-border e-
commerce enterprises and customs. At present, China's cross-border e-commerce export express returns
refunded goods to the seller's location. Goods are generally returned to local warehouses to wait for processing.
In the future, countries may look into the issue on how to optimize the regulatory process to support the cross-
border return process of goods. This requires better information systems and platforms for the information
integration process.
However, it is crucial to emphasize that BPA analysis only depicts one specific scenario (similar to a snapshot)
of the trade process, and the analysis may not be applicable to multiple scenarios. For example, a new seller
viii
and a regular seller may need to go through different procedures. Some cross-border e-commerce platforms
provide comprehensive services, including payment, logistics, warehousing, and importing/exporting. However,
some other platforms may only provide limited service and the seller has to arrange more services, and go
through different procedures. Furthermore, when the BPA is conducted at different times, the rules and
regulations for imports and exports may change, which will consequently change the results of the BPA analysis.
In conclusion, navigating the intricacies of cross-border e-commerce requires concerted efforts from both public
and private stakeholders. By addressing regulatory ambiguities, fostering collaboration, and empowering
market participants, policymakers can unlock the potential of cross-border trade, driving economic growth and
consumer welfare.
ix
Contents
ACKNOWLEDGEMENTS ............................................................................................................................................ V
EXECUTIVE SUMMARY ............................................................................................................................................ VI
CHAPTER 1. INTRODUCTION .................................................................................................................................... 1
OBJECTIVE AND SCOPE OF THE STUDY ............................................................................................................... 1
OVERVIEW OF BUSINESS PROCESS ANALYSIS FOR TRADE FACILITATION ............................................................. 2
TRADE BETWEEN CHINA AND MALAYSIA ............................................................................................................. 4
CHAPTER 2. BUSINESS PROCESS ANALYSIS ............................................................................................................. 6
PROCESS AREA 1：BUY ................................................................................................................................... 8
CORE BUSINESS PROCESS：PLACE ON THE PLATFORM/SHOWCASE PRODUCTS ON VIDEO ................................. 9
CORE BUSINESS PROCESS：CONCLUSION OF TRANSACTIONS ON THE PLATFORM .......................................... 13
PROCESS AREA 2：SHIP ................................................................................................................................ 17
CORE BUSINESS PROCESS：SELLERS REGISTER TO OPEN A SHOP ON THE PLATFORM .................................... 18
CORE BUSINESS PROCESS：SELLERS BIND COLLECTION ACCOUNTS ON THE PLATFORM .................................. 21
CORE BUSINESS PROCESS：SELLER LISTING PRODUCT INFORMATION ON THE PLATFORM ............................... 24
CORE BUSINESS PROCESS：SELLER ARRANGES DISPATCH ............................................................................ 27
CORE BUSINESS PROCESS：SELLER COMMISSION THE MALAYSIAN SPECIALISED LOGISTICS COMPANY IN EXPORT
CUSTOMS CLEARANCE ........................................................................................................................................... 31
CORE BUSINESS PROCESS：SELLER COMMISSION THE INTERNATIONAL SPECIALISED LOGISTICS COMPANY IN
IMPORT CUSTOMS CLEARANCE ............................................................................................................................... 35
CORE BUSINESS PROCESS：SPECIALISED LOGISTICS COMPANY ARRANGE LOCAL POSTAL OR COURIER TO
DELIVER GOODS .................................................................................................................................................... 39
CORE BUSINESS PROCESS：SELLER ARRANGES RETURN REFUND ................................................................. 43
PROCESS AREA 3：PAY ................................................................................................................................. 47
CORE BUSINESS PROCESS：BUYER COMPLETING PAYMENT ON THE PLATFORM .............................................. 48
CORE BUSINESS PROCESS：BUYER COMPLETES THE RECEIPT OF GOODS AND PAYS THE SELLER .................... 53
TIME FOR IMPORT............................................................................................................................................ 56
x
CHAPTER 3. RECOMMENDATIONS AND CONCLUSION .............................................................................................. 58
List of Figures
FIGURE 1. 1 A STEP-BY-STEP APPROACH TO IMPLEMENTING TRADE FACILITATION MEASURES ..................................... 2
FIGURE 1. 2 BUY-SHIP-PAY MODEL ......................................................................................................................... 3
FIGURE 1. 3 EXAMPLES OF USE-CASE AND ACTIVITY DIAGRAMS ................................................................................. 4
FIGURE 2. 1 USE-CASE DIAGRAM OF CHINA’S CROSS-BORDER E-COMMERCE EXPORT OF CONSUMER ELECTRONIC
PRODUCTS TO MALAYSIA ........................................................................................................................................ 7
FIGURE 2. 2 “BUY” USE-CASE DIAGRAM .................................................................................................................... 8
FIGURE 2. 3 “PLACE ON THE PLATFORM SHOWCASE PRODUCTS ON VIDEO” USE-CASE DIAGRAM ................................. 9
FIGURE 2. 4 “PLACE ON THE PLATFORM SHOWCASE PRODUCTS ON VIDEO” ACTIVITY DIAGRAM ................................. 10
FIGURE 2. 5 “CONCLUSION OF TRANSACTIONS ON THE PLATFORM” USE-CASE DIAGRAM........................................... 13
FIGURE 2. 6 “CONCLUSION OF TRANSACTIONS ON THE PLATFORM” ACTIVITY DIAGRAM............................................. 14
FIGURE 2. 7 “SHIP” USE-CASE DIAGRAM ................................................................................................................. 17
FIGURE 2. 8 “SELLERS REGISTER TO OPEN A SHOP ON THE PLATFORM” USE-CASE DIAGRAM ..................................... 18
FIGURE 2. 9 “SELLERS REGISTER TO OPEN A SHOP ON THE PLATFORM” ACTIVITY DIAGRAM ....................................... 19
FIGURE 2. 10 “SELLERS BIND COLLECTION ACCOUNTS ON THE PLATFORM” USE-CASE DIAGRAM ................................ 21
FIGURE 2. 11 “SELLERS BIND COLLECTION ACCOUNTS ON THE PLATFORM” ACTIVITY DIAGRAM .................................. 22
FIGURE 2. 12 “SELLER LISTING PRODUCT INFORMATION ON THE PLATFORM” USE-CASE DIAGRAM .............................. 24
FIGURE 2. 13 “SELLER LISTING PRODUCT INFORMATION ON THE PLATFORM” ACTIVITY DIAGRAM ................................ 25
FIGURE 2. 14 “SELLER ARRANGES DISPATCH” USE-CASE DIAGRAM .......................................................................... 27
FIGURE 2. 15 “SELLER ARRANGES DISPATCH” ACTIVITY DIAGRAM ............................................................................ 28
FIGURE 2. 16 “SELLER COMMISSION THE MALAYSIAN SPECIALISED LOGISTICS COMPANY IN EXPORT CUSTOMS
CLEARANCE” USE-CASE DIAGRAM ........................................................................................................................... 31
FIGURE 2. 17 “SELLER COMMISSION THE MALAYSIAN SPECIALISED LOGISTICS COMPANY IN EXPORT CUSTOMS
CLEARANCE” ACTIVITY DIAGRAM ............................................................................................................................. 32
FIGURE 2. 18 “SELLER COMMISSION THE INTERNATIONAL SPECIALISED LOGISTICS COMPANY IN IMPORT CUSTOMS
CLEARANCE” USE-CASE DIAGRAM ........................................................................................................................... 35
FIGURE 2. 19 “SELLER COMMISSION THE INTERNATIONAL SPECIALISED LOGISTICS COMPANY IN IMPORT CUSTOMS
CLEARANCE” ACTIVITY DIAGRAM ............................................................................................................................. 36
FIGURE 2. 20 “SPECIALISED LOGISTICS COMPANY ARRANGE LOCAL POSTAL OR COURIER TO DELIVER GOODS” USE-CASE
DIAGRAM .............................................................................................................................................................. 39
FIGURE 2. 21 “SPECIALISED LOGISTICS COMPANY ARRANGE LOCAL POSTAL OR COURIER TO DELIVER GOODS” ACTIVITY
DIAGRAM .............................................................................................................................................................. 40
FIGURE 2. 22 “SELLER ARRANGES RETURN REFUND” USE-CASE DIAGRAM................................................................ 43
FIGURE 2. 23 “SELLER ARRANGES RETURN REFUND” ACTIVITY DIAGRAM .................................................................. 44
xi
List of Tables
TABLE TOP IMPORTED GOODS OF MALAYSIA FROM CHINA…………………………………………………….……. 4
TABLE 2. 1 “PLACE ON THE PLATFORM SHOWCASE PRODUCTS ON VIDEO” PROCESS DESCRIPTION ............................ 11
TABLE 2. 2 “CONCLUSION OF TRANSACTIONS ON THE PLATFORM” PROCESS DESCRIPTION ....................................... 15
TABLE 2. 3 “SELLERS REGISTER TO OPEN A SHOP ON THE PLATFORM” PROCESS DESCRIPTION ................................. 20
TABLE 2. 4 “SELLERS BIND COLLECTION ACCOUNTS ON THE PLATFORM” PROCESS DESCRIPTION .............................. 23
TABLE 2. 5 “SELLER LISTING PRODUCT INFORMATION ON THE PLATFORM” PROCESS DESCRIPTION ............................ 26
TABLE 2. 6 “SELLER ARRANGES DISPATCH” PROCESS DESCRIPTION ........................................................................ 29
TABLE 2. 7 “SELLER COMMISSION THE MALAYSIAN SPECIALISED LOGISTICS COMPANY IN EXPORT CUSTOMS CLEARANCE”
PROCESS DESCRIPTION ......................................................................................................................................... 33
TABLE 2. 8 “SELLER COMMISSION THE INTERNATIONAL SPECIALISED LOGISTICS COMPANY IN IMPORT CUSTOMS
CLEARANCE” PROCESS DESCRIPTION ..................................................................................................................... 37
TABLE 2. 9 “SPECIALISED LOGISTICS COMPANY ARRANGE LOCAL POSTAL OR COURIER TO DELIVER GOODS” PROCESS
DESCRIPTION ........................................................................................................................................................ 41
TABLE 2. 10 “SELLER ARRANGES RETURN REFUND” PROCESS DESCRIPTION ............................................................ 45
TABLE 3. 1 DIAGNOSIS OF BOTTLENECKS AND RECOMMENDATIONS FOR STREAMLINING TRADE PROCESSES .............. 61
1
Chapter 1. Introduction
Objective and scope of the study
Cross-border e-commerce enables small- and medium-sized enterprises (SMEs) worldwide to directly market
their products to consumers abroad via specialized online platforms, leading to a decentralization of trade. This
development has created new opportunities for SMEs globally. Nonetheless, this mode of commerce introduces
significant regulatory and trade optimization hurdles. Areas requiring deeper exploration include trade
optimization, regulatory frameworks, and adherence to compliance standards.
Through cross-border e-commerce, transactions between international buyers and sellers can be finalized
online. However, the logistics of cross-border e-commerce vary widely, with sellers choosing from a plethora of
delivery methods. Options range from dispatching small parcels through standard postal services to employing
courier companies for direct deliveries to international customers. Additionally, there's the strategy of
aggregating products in foreign warehouses close to the target market for local distribution. The choice of
transport—whether air, sea, or land, or a combination thereof—depends on the product's value, further
complicating the delivery process for sellers in cross-border e-commerce.
Such trade fragmentation complicates the regulatory efforts of governments over cross-border e-commerce.
The sheer volume of parcels escalates the challenges, costs, and questions the efficiency of trade regulation.
Despite the increasing importance of cross-border e-commerce, little is known about each procedure for
completing a cross-border e-commerce transaction. Accordingly, discussion on cross-border e-commerce often
lack empirical evidence. To overcome such a gap, this study reviews each trade procedure, including the key
actors involved. The key methodology is a Business Process Analysis (BPA) for Trade Facilitation, as explained
in section .
2
Overview of Business Process Analysis for Trade Facilitation
Business Process Analysis (BPA) of Trade Procedures, developed by UNNExT1 is an effective tool for providing
a detailed understanding of international trade transactions. Similar to the existing studies, the UNNExT
Business Process Analysis Guide to Simplify Trade Procedures2 was used to study the export of iron, steel, and
metal products from Kazakhstan to European countries.
According to UN/CEFACT (see Figure )3, BPA is recommended as the first step before undertaking other
trade facilitation measures related to the simplification, harmonization, and automation of trade procedures and
documents.
FIGURE 1. 1 A STEP-BY-STEP APPROACH TO IMPLEMENTING TRADE FACILITATION MEASURES
1 More information is available at
2 Detailed information is available at <
procedures-case-studies>
3 United Nations Economic Commission for Europe (UNECE), 2006, Background Paper for UN/CEFACT Symposium on
Single Window Common Standards and Interoperability.
Business Process Analysis
Process simplification and harmonization
Documents simplification and alignment
National data harmonization
Cross-border data harmonization &
exchange
E-Single Window & paperless
trading
Source: UNECE, 2006, Background Paper for UN/CEFACT Symposium on
Single Window Common Standards and Interoperability
3
The trade procedures covered by BPA largely fall in the category of Buy-Ship-Pay model recommended by
UN/CEFACT (as shown in Figure ). In some cases, the scope could be confined to selected processes
according to the priority of the country.
FIGURE 1. 2 BUY-SHIP-PAY MODEL
Source: UN/CEFACT Recommendation No. 18 illustrates a simplified view of the international supply chain in
the Buy-Ship-Pay model. The model identifies the key commercial, logistical, regulatory and payment
procedures involved in the international supply chain and provides an overview of the information exchanged
between the parties throughout its various steps4.
One of the key features of the UNNExT Business Process Analysis Guide to Simplify Trade Procedures is the
introduction of the Unified Modelling Language (UML) as a standard way to graphically represent the various
procedures involved in the trade process (Figure ). This common standard is essential for providing a
systematic description and common language of a procedure that can be understood by all stakeholders
involved in international trade transactions, both domestic and foreign.
4
4
Figure 1. 3 EXAMPLES OF USE-CASE AND ACTIVITY DIAGRAMS
UML Use-Case Diagram UML Activity Diagram
UML Use-Case and Activity Diagrams are
used to visualize the captured knowledge of
the business processes. The Use-Case
Diagram illustrates high-level business
processes and the actors associated with
each of them. It serves as a frame of
reference for further elaboration of business
process modelling work. The Activity
Diagram, on the other hand, describes
activities, inputs, and outputs associated
with each business process listed in the
Use-Case Diagram.
Source:
Trade between China and Malaysia
Imports from China account for % of total imports of Malaysia. In 2022, Malaysia imported $ billion
from the world, with top sources being: China (%), Singapore (%) and Other Asia, not elsewhere
specified (.) (%). Therefore, valued at $ billion, China is the top import source (by trade value)
for Malaysia.
As shown in Table , in 2022, China primarily exported intermediate goods to Malaysia, specifically
computer parts:
TABLE TOP IMPORTED GOODS OF MALAYSIA FROM CHINA
HS Code Commodity Value (billion $)
271019
Petroleum oils and oils from bituminous minerals; not light oils and
preparations
854231 Electronic integrated circuits: processors and controllers
854232 Electronic integrated circuits; memories
854239 Electronic integrated circuits; . in heading no. 8542
999999 Commodities not specified according to kind
853400 Circuits; printed
271012 Petroleum oils and oils from bituminous minerals; light oils and preparations
847130 Automatic data processing machines
381800 Chemical elements; doped for use in electronics
854290 Parts of electronic integrated circuits
Source:
5
Chinese exports to Malaysia are covered by regional agreements negotiated under ASEAN, which has a few
notable agreements with China.
The Framework Agreement on Comprehensive Economic Cooperation, signed in 2002, formed the foundation
for further trade agreements between both parties. Notably, the ASEAN-China Free Trade Area (ACFTA),
signed in 2010, and is the largest free trade area in the world (combined market of billion peoples and
GDP of $ trillion, 2011). The ACFTA covers three specific agreements: 1) ASEAN-China Trade in Goods
Agreement, 2) Agreement on Trade in Services, and 3) Investment Agreement.
In 2014, both parties agreed to upgrade the ACFTA, which was fully upgraded in 2019 with new amendments
revising Rules of Origin, and specific commitments to facilitate investment, and reduce tariff- and non-tariff
barriers to trade.
6
Chapter 2. Business process
analysis
In the intricate process of exporting consumer electronic products from China to Malaysia, as shown in Figure
, a total of thirteen actors play pivotal roles. Yet, it is crucial to emphasize that the Business Process Analysis
(BPA) might only represent a singular perspective of this complex procedure. Significantly, the trading protocols
can vary greatly depending on various factors, such as the distinction between a novice seller and an
experienced one, or the differences in the operational models of various e-commerce platforms. While some
platforms offer an all-encompassing suite of services, including payment processing, logistics, customs
facilitation, and warehousing, others might only furnish the most fundamental services.
Grasping these variances is essential for a comprehensive understanding of the advantages and limitations
inherent in applying BPA. BPA essentially offers a snapshot, capturing the nuances of a specific scenario at a
particular moment in time. Consequently, when BPA analyses are conducted at different times or under different
circumstances, the outcomes are likely to exhibit variations. This dynamism underscores the importance of
recognizing BPA's utility as a tool for understanding specific instances rather than a one-size-fits-all solution for
the entire spectrum of trading activities between China and Malaysia.
7
FIGURE 2. 1 USE-CASE DIAGRAM OF CHINA’S CROSS-BORDER E-COMMERCE EXPORT OF CONSUMER ELECTRONIC PRODUCTS TO MALAYSIA
8
Process Area 1：Buy
FIGURE 2. 2 “BUY” USE-CASE DIAGRAM
In the context of "China's cross-border e-commerce exports of consumer electronic products to Malaysia", the
"Buy" process area includes two core business processes: "Place on the platform/Showcase products on video"
and "Conclusion of Transactions on the Platform", which shows the interaction between buyers and sellers
based on the third-party trading platform.
9
Core business process 1-1：Place on the
platform/Showcase products on video
FIGURE 2. 3 “PLACE ON THE PLATFORM SHOWCASE PRODUCTS ON VIDEO” USE-CASE DIAGRAM
"Place on the platform/Showcase products on video" is one of the core business processes in the "Buy" process
area. The use case diagram shown in Figure indicates that the core business process requires the following
participants:
◼ Seller
◼ Buyer
10
FIGURE “PLACE ON THE PLATFORM SHOWCASE PRODUCTS ON VIDEO” ACTIVITY DIAGRAM
11
TABLE “PLACE ON THE PLATFORM SHOWCASE PRODUCTS ON VIDEO” PROCESS DESCRIPTION
Name of the process area Buy
Name of the business
process
Place on the platform/Showcase products on video
Related laws, rules and
regulations
The Cybersecurity Law of the People's Republic of China
Electronic commerce law (China)
Anti-Unfair Competition Law of the People's Republic of China (2019
Amendment)
Provisions on Ecological Governance of Network Information Content (China)
Regulations on the Administration of Internet Live Streaming Services
(China)
Consumer Protection (Electronic Trade Transactions) Regulations 2012
Consumer Protection (Malaysia)
Electronic commerce law (Malaysia)
Process participant
Buyer of Malaysia
Seller of China
live steaming platform
Input and criteria to
enter/begin the business
process
Download the relevant platforms
Preparation of the required materials
Anchor provides identity documents
Activities and associated
documentary requirements
Sellers need to upload ID card, mobile phone number and other
information to apply for an account
The platform audits the information uploaded by the seller
The platform issues accounts to sellers who pass the audit
The seller logs into the account
Sellers apply for live content broadcasting
The platform audits whether the buyer meets the conditions for live
content streaming
The platform issues live content broadcasting rights to sellers who meet
the conditions for live streaming.
Sellers apply to open a platform shop
Sellers upload the required information to open a shop on the platform
The platform audits the information uploaded by the seller.
The Seller who passes the audit pays the deposit to the platform.
The platform issues shop opening privileges to sellers who have
completed the requirements.
12
Sellers upload product information on the platform.
The platform audits the products.
The Seller who passes the audit can upload their products.
Buyers can click on the link to purchase goods
Sellers who open live content can apply for live streaming with goods
The platform audits whether the seller meets the conditions for live
streaming with goods
The platform to pass the audit of the seller issued by the live with the
goods permissions
Sellers can display and sell goods in the live broadcast after opening
the live broadcast with goods
Buyers enter the seller's live room through the platform.
The buyer clicks on the link to the product in the live stream to buy it
The buyer successfully places the order
Output and criteria to exit
the business process
Platform shop
Accounts with live streaming access
Average time required to
complete this business
process
Approximately two days
13
Core business process 1-2：Conclusion of Transactions
on the Platform
FIGURE 2. 5 “CONCLUSION OF TRANSACTIONS ON THE PLATFORM” USE-CASE DIAGRAM
"Conclusion of Transactions on the Platform" is the second core business process flow diagram in the "Buy"
business area. From the use case diagram in Figure , this core business process requires the participation
of both buyers and sellers.
14
FIGURE 2. 6 “CONCLUSION OF TRANSACTIONS ON THE PLATFORM” ACTIVITY DIAGRAM
15
TABLE 2. 2 “CONCLUSION OF TRANSACTIONS ON THE PLATFORM” PROCESS DESCRIPTION
Name of the process area Buy
Name of the business
process
Conclusion of transactions on the platform
Related laws, rules and
regulations
Regulations of cross-border e-commerce platforms, including: rules for intra-
platform transactions, information disclosure and auditing, protection of privacy
and trade secrets, handling of objectionable information, customer complaint
and grievance service system, consumer dispute mediation and self-regulatory
system for consumer rights protection
Regulations of the People’s Republic of China on Certification and
Accreditation
China Compulsory Certification
Customs Order 1988 (Malaysia)
Customs Law (Malaysia)
Customs Import Control Regulations (Malaysia)
Communications and Multimedia Act 1998
Approved of Electrical Equipment (Electricity Regulation) 1994
Process participant
Seller of China
Buyer of Malaysia
Input and criteria to
enter/begin the business
process
Both the Chinese seller and the Malaysian buyer have registered their
accounts on the cross-border e-commerce platform and have been certified by
the platform;
The Chinese seller is qualified to sell on the cross-border e-commerce platform
and the Malaysian buyer is qualified to buy on the platform;
The Malaysian buyers have the demand to buy consumer electronic products
and the Chinese sellers have the ability to sell consumer electronic products.
Activities and associated
documentary requirements
Chinese sellers register on the cross-border e-commerce platform and
obtain seller accounts, and Malaysian buyers register on the cross-border e-
commerce platform and obtain buyer accounts;
Chinese sellers ensure that the consumer electronic products exported
to Malaysia comply with the relevant local laws and regulations in Malaysia,
and ensure that the products have passed the relevant certifications, such as
electrical products obtaining SIRIM certification, and communication
equipment products obtaining MCMC certification;
Chinese sellers upload consumer electronic products on the cross-border
e-commerce platform that comply with the trading rules of the platform and
publish the trading offer of the goods, the main information should include:
seller's shop news, description of the quality of the goods, information on the
country of origin, the measurement of the products, prices, service conditions,
payment methods, freight charges as well as a special description of the
trading services;
The cross-border e-commerce platform reviews and approves the
transaction offer issued by the Chinese seller, and on the basis of not violating
the platform's commodity trading rules and other relevant laws and regulations,
16
the cross-border e-commerce platform displays the Chinese seller's
commodity information and transaction conditions, and the Malaysian buyers
can also see the information on the consumer electronic product offer issued
by the Chinese seller through the cross-border e-commerce platform;
The Malaysian buyer logs into the account of the cross-border e-
commerce platform, enters into the cross-border e-commerce platform, and
screens the consumer electronic products that meet his/her conditions through
the transaction offer information of the Chinese sellers displayed on the
webpage of the platform, and selects his/her desired transaction conditions
such as the transaction quantity, the mode of service, and the place of delivery
in the platform;
The Malaysian buyer confirms his/her choice of transaction conditions
such as price, quantity, etc. in the platform, and the transaction can only
continue after the Malaysian buyer accepts the Chinese seller's transaction
conditions;
When the buyer and seller agree on the trading conditions of the goods
such as price, quantity, shipping method, delivery location, etc., the webpage
of the platform will generate an online contract and send the order payment
information to the Malaysian buyer;
After the Malaysian buyers receive their order information on the
platform, under the premise of confirming that the basic information is correct,
the Malaysian buyers will pay for the order, and the buyers can complete the
order payment online through the payment tools such as Alipay, WeChat, bank
cards, etc., which are bound in the platform;
After receiving the platform information that the Malaysian buyer has
completed the payment of the order, the Chinese seller should start to prepare
for the fulfilment of the responsibility of goods delivery, and after the completion
of the delivery of the goods should be uploaded on the platform in a timely
manner in the transaction webpage of the courier logistics number or other
documents that can prove that the goods have been shipped, so that the
Malaysian buyer can also be able to know the progress of the order in a timely
manner through the platform.
Output and criteria to exit
the business process
Chinese sellers and Malaysian buyers have completed the "close the deal on
the platform" activity;
The Malaysian buyer completed the online payment on the cross-border e-
commerce platform;
The Chinese seller fulfils its shipping duties in accordance with the online
contract on the platform.
Average time required to
complete this business
process
Average two-three days
17
Process Area 2：Ship
FIGURE 2. 7 “SHIP” USE-CASE DIAGRAM
In the context of Chinese cross-border e-commerce exporting consumer electronic products to Malaysia, the
"Ship" process area includes 8 core business processes. As shown in Figure , the core business process
under "Ship" handles the requirements for cross-border e-commerce sellers to ship, clear customs, and process
sales on the e-commerce platform. This includes the necessary requirements for cross-border e-commerce
sellers to set up on the e-commerce platform and make sales, as well as the necessary export procedures for
consumer electronic products to enter Malaysia. The use case diagram describes the needs of Chinese cross-
border e-commerce companies exporting these products.
18
Core business process 2-1：Sellers register to open a
shop on the platform
FIGURE 2. 8 “SELLERS REGISTER TO OPEN A SHOP ON THE PLATFORM” USE-CASE DIAGRAM
The first core business process within the "Ship" process area is "Sellers register to open a shop on the platform",
which is also the general requirement for Chinese cross-border e-commerce sellers to sell their consumer
electronic products on the platform. The use case diagram in Figure shows that this core business process
requires the involvement of two parties:
◼ Seller of China
◼ Third-Party Trading Platform
19
FIGURE 2. 9 “SELLERS REGISTER TO OPEN A SHOP ON THE PLATFORM” ACTIVITY DIAGRAM
20
TABLE 2. 3 “SELLERS REGISTER TO OPEN A SHOP ON THE PLATFORM” PROCESS DESCRIPTION
Name of the process area Ship
Name of the business
process
Seller register to open a shop on the platform
Related laws, rules and
regulations
Rules for registering sellers on e-commerce platforms
Anti-Unfair Competition Law of the People's Republic of China
E-Commerce Law of the People's Republic of China
Product Quality Law of the People's Republic of China
Contract Law of the People's Republic of China
Trademark Law of the People's Republic of China
Law of the People's Republic of China on the Protection of Consumer Rights
and Interests
Consumer Protection (Electronic Trade Transactions) Regulations (Malaysia)
Consumer Protection 1999 (Malaysia)
Electronic commerce law 2006 (Malaysia)
Process participant
Seller of China
Cross-border e-commerce platform
Input and criteria to
enter/begin the business
process
Sellers need to prepare materials about opening a shop, including information
about the legal representative (ID card, etc.)
Not registered seller account email
Company name, business address, business licence registration code
Company bank account and so on
ID card and business licence electronic or original
Water, electricity and coal bills, etc.
Activities and associated
documentary requirements
Sellers must prepare materials, log on to the Platform to register and
open a shop.
Sellers enter and submit information, including legal representative
information (ID card, date of birth, etc.), email address of unregistered seller
account, company name, business address, business licence registration
code, bank account, etc.
Platform verification of the information provided
Sellers enter and submit store information, including store name, product
code, officially registered trademark, manufacturer or brand owner
authorisation.
The Platform verifies the submitted information.
Seller qualification verification (identity verification, address verification,
video verification)
21
Identity verification, need to submit electronic version of ID card,
electronic version of business licence
Video verification, need to show the original ID card, original business
licence, utility bills
Address verification (individual seller), provide the seller's address
Platform verification of all the above submitted information, if the
verification does not pass, the seller needs to re-qualification verification
After verification, the seller enters the relevant site to start selling.
Output and criteria to exit
the business process
Successful registration and opening of shops by sellers on cross-border e-
commerce platforms.
Average time required to
complete this business
process
Approximately five-seven days
Core business process 2-2：Sellers bind collection
accounts on the platform
FIGURE 2. 10 “SELLERS BIND COLLECTION ACCOUNTS ON THE PLATFORM” USE-CASE DIAGRAM
The use case diagram in Figure shows that the business process of "Sellers bind collection accounts on
the platform" requires three parties to be involved:
◼ Seller of China
◼ Third party trading platform
◼ Third party collection platform
22
FIGURE 2. 11 “SELLERS BIND COLLECTION ACCOUNTS ON THE PLATFORM” ACTIVITY DIAGRAM
23
TABLE 2. 4 “SELLERS BIND COLLECTION ACCOUNTS ON THE PLATFORM” PROCESS DESCRIPTION
Name of the process area Ship
Name of the business
process
Seller bind collection accounts on the platform
Related laws, rules and
regulations
Payment collection policy for sellers of e-commerce platforms
E-Commerce Law of the People's Republic of China
Regulation of the People's Republic of China on Foreign Exchange
Administration
Detailed Rules for the Implementation of the Measures for the Administration
of Individual Foreign Exchange
Interim Regulation of the People's Republic of China on Value Added Tax
Malaysia Exchange Control Act 1953
Malaysia Taxation Act
Process participant
Seller of China
Platform
Third-party collection platform
Input and criteria to
enter/begin the business
process
Prepare the required information, including the place of business registration,
company name, business licence, bank card account number, shop name,
shop registration information, etc.
Activities and associated
documentary requirements
Sellers enter the account registration page of the third party platform
through the e-commerce platform.
Enter and submit payment account registration information, including
place of business, company name, business licence, bank account number.
The Third Party Collection Platform will verify the payment account
registration information submitted.
After verification by the Third Party Payment Platform and passing the
verification, the Seller receives the payment account and must also provide
the store name and store registration information to link the store to the
payment account.
The cross-border e-commerce platform will synchronise the binding
information.
If the verification passes, the seller is granted the right to collect
payments from the shop; if the verification fails, the seller is required to
provide materials to re-bind the collection account.
Output and criteria to exit
the business process
Sellers will be able to set up collection accounts and be paid for the orders
they receive from buyers.
Average time required to
complete this business
process
Approximately two days.
24
Core business process 2-3：Seller listing product
information on the platform
FIGURE 2. 12 “SELLER LISTING PRODUCT INFORMATION ON THE PLATFORM” USE-CASE DIAGRAM
The use case diagram in Figure shows that the process of "Seller listing product information on the
platform" requires the following participants:
◼ Seller of China
◼ Third party trading platform
◼ Malaysian Product Certification Organisation
25
FIGURE 2. 13 “SELLER LISTING PRODUCT INFORMATION ON THE PLATFORM” ACTIVITY DIAGRAM
26
TABLE 2. 5 “SELLER LISTING PRODUCT INFORMATION ON THE PLATFORM” PROCESS DESCRIPTION
Name of the process area Ship
Name of the business
process
Seller listing product information on the platform
Related laws, rules and
regulations
Regulations of the People’s Republic of China on Certification and
Accreditation (2020 Revision)
Customs Laws of the People’s Republic of China
Measures for the Supervision and Administration of Online Transactions
Malaysia MCMC Certification
Malaysia SIRIM Certification
Electricity Supply Act 1990 (Malaysia)
Approved of Electrical Equipment (Electricity Regulation) 1994
Process participant
Seller of China
Trading platform
Malaysian Product Certification Organisation
Input and criteria to
enter/begin the business
process
Prepare merchandise inventory
Preparation of required materials
Activities and associated
documentary requirements
The sellers select products, prepare materials, and make necessary
arrangements for displaying the goods on the shelves.
The sellers apply for product certification from the importing country's
product certification bodies.
The sellers fill out the application form for product certification.
The sellers submit the audit materials.
The importing country's product certification body issues certification for
goods that pass the audit.
The sellers obtain the product certification certificate.
Sellers enter and submit the necessary information for their goods on
the platform.
27
The Platform then verifies the Seller's information and the submitted
product information.
If the seller meets the requirements, they are approved by the platform
The seller can successfully display their products on the shelves.
Output and criteria to exit
the business process
Product Certificate
Products can be sold
Average time required to
complete this business
process
Approximately three days
Core business process 2-4：Seller arranges dispatch
FIGURE 2. 14 “SELLER ARRANGES DISPATCH” USE-CASE DIAGRAM
The use case diagram in Figure shows that the process of "seller arranges dispatch" requires the following
participants:
◼ Seller of China
◼ Third party trading platform
◼ China’s Domestic Logistics Company
◼ Malaysian International Specialised Logistics Company
28
FIGURE 2. 15 “SELLER ARRANGES DISPATCH” ACTIVITY DIAGRAM
29
TABLE 2. 6 “SELLER ARRANGES DISPATCH” PROCESS DESCRIPTION
Name of the process area Ship
Name of the business
process
Seller arranges dispatch
Related laws, rules and
regulations
Customs Law
Customs Import Control Regulations (Malaysia)
Sales tax on Low Value Goods (LVG)
Measures taken by China Customs to monitor inbound and outbound express
shipments
Notice of the General Administration of Customs of the People's Republic of
China No. 19 of 2016 (Notice on Matters Related to the Implementation of the
New Express Customs Clearance System)
Process participant
Seller of China
Cross-border E-commerce platform
China’s Domestic Logistics Company
Malaysian International Specialised Logistics Company
Input and criteria to
enter/begin the business
process
The goods must comply with the contract requirements and national laws.
Activities and associated
documentary requirements
The seller prepares relevant materials and goods for shipment.
Sellers enter/import transport and delivery information on the platform
(information includes: consignor information, delivery location, contact
information, consignee country, consignee, consignee contact information)
The cross-border e-commerce platform audits and confirms the
transport and delivery information imported by sellers on the platform.
China's domestic logistics company receives the cargo transport
information sent from the platform
The Malaysian International Specialised Logistics Company receives
the cargo transport information from China domestic logistics company
The Malaysian international specialised logistics company generates
the corresponding international logistics order number based on the cargo
transport information.
30
China's domestic logistics companies synchronise the logistics order
number and logistics information
Cross-border e-commerce platforms synchronise logistics order
numbers and logistics information
Sellers get logistics order number
Sellers prepare goods according to the contract, including sorting,
packing, weighing, etc.
Sort the goods according to the contract, and then affix the
corresponding international courier face sheet
The seller transports the goods to the Chinese domestic logistics
company.
The Chinese domestic logistics company collects the goods.
The Chinese domestic logistics company synchronises the logistics
information to the cross-border e-commerce platform.
China's domestic logistics company delivers the goods to the
Malaysian international specialised logistics specialised line
Cross-border e-commerce platforms keep logistics information up to
date on their own platforms
The cross-border e-commerce platform synchronises transport
information to the Malaysian International Specialised Logistics Company
The Malaysian International Specialised Logistics Company accepts
the cargo transport information from the platform
And connect with the domestic logistics company to collect the goods.
The seller completes the shipment
Output and criteria to exit
the business process
Logistic order number, logistic information and export of goods
Average time required to
complete this business
process
Approximately one and a half days
31
Core business process 2-5：Seller commission the
Malaysian specialised logistics company in export
customs clearance
FIGURE 2. 16 “SELLER COMMISSION THE MALAYSIAN SPECIALISED LOGISTICS COMPANY IN EXPORT CUSTOMS
CLEARANCE” USE-CASE DIAGRAM
The use case diagram in Figure shows that the process of “Seller commission the Malaysian specialised
logistics company in export customs clearance” requires the following participants:
◼ Seller of China
◼ Third party trading platform
◼ Malaysian International Specialised Logistics Company
◼ Customs of China
32
FIGURE 2. 17 “SELLER COMMISSION THE MALAYSIAN SPECIALISED LOGISTICS COMPANY IN EXPORT CUSTOMS
CLEARANCE” ACTIVITY DIAGRAM
33
TABLE 2. 7 “SELLER COMMISSION THE MALAYSIAN SPECIALISED LOGISTICS COMPANY IN EXPORT CUSTOMS
CLEARANCE” PROCESS DESCRIPTION
Name of the process area Ship
Name of the business
process
Seller commission the Malaysian specialised logistics company in export
customs clearance
Related laws, rules and
regulations
Measures taken by China Customs to monitor inbound and outbound express
shipments
Notice of the General Administration of Customs of the People's Republic of
China No. 19 of 2016 (Notice on Matters Related to the Implementation of the
New Express Customs Clearance System)
General Administration of Customs Announcement No. 12 of 2014
(Announcement on the Addition of Customs Supervision Mode Codes)
Process participant
Chinese Sellers
Cross-border e-commerce platform
Malaysian Dedicated Logistics Company
China’s Customs
Input and criteria to
enter/begin the business
process
Enterprises must apply for cross-border e-commerce business filing with
Customs.
consumer electronic products, are required to obtain SIRIM certification.
Among them, electrical products need to apply for SIRIM certification,
communication equipment products need to apply for MCMC certification
Activities and associated
documentary requirements
The Seller entrusts the Malaysian Specialised Logistics Company with
export customs clearance.
The Malaysian Specialised Logistics Company accepts the commission
for export customs clearance and collects the goods.
After receiving the goods, the Malaysian Specialised Logistics
Company provides export logistics information to the platform.
The Malaysian Specialised Logistics Company submits an application
for customs clearance to the Customs.
The Malaysian Specialised Logistics Company arranges for Customs to
inspect the goods.
34
The platform generates electronic order and receipt information and
accepts the export logistics information provided by The Malaysian
Specialised Logistics Company.
The platform provides Customs with electronic order and receipt
information and export logistics information.
Customs accepts the application for customs declaration.
Customs will verify the documents and goods. If the verification is
correct, the goods will be released. If there are any discrepancies in the
documents during the verification process, the application will be returned.
After customs verification, the Malaysian Specialised Logistics
Company will ship the goods and synchronise the shipment information with
the platform.
The platform accepts customs declarations and logistics information
and synchronises them with the seller at any time.
Sellers are completing export customs clearance procedures.
Output and criteria to exit
the business process
The customs system of the exporting country receives the order, payment
slip, and logistics slip, and releases the goods after verifying the consistency
of the documents and goods.
Average time required to
complete this business
process
Approximately one-three days
35
Core business process 2-6：Seller commission the
international specialised logistics company in import customs
clearance
FIGURE 2. 18 “SELLER COMMISSION THE INTERNATIONAL SPECIALISED LOGISTICS COMPANY IN IMPORT CUSTOMS
CLEARANCE” USE-CASE DIAGRAM
The use case diagram in Figure shows that the process of “Seller commission the international specialised
logistics company in import customs clearance” requires the following participants:
◼ Seller of China
◼ Third party trading platform
◼ Customs of Malaysia
◼ Local Malaysian warehouse operators
36
FIGURE 2. 19 “SELLER COMMISSION THE INTERNATIONAL SPECIALISED LOGISTICS COMPANY IN IMPORT CUSTOMS
CLEARANCE” ACTIVITY DIAGRAM
37
TABLE 2. 8 “SELLER COMMISSION THE INTERNATIONAL SPECIALISED LOGISTICS COMPANY IN IMPORT CUSTOMS
CLEARANCE” PROCESS DESCRIPTION
Name of the process area Ship
Name of the business
process
Seller commission the international specialised logistics company in
import customs clearance
Related laws, rules and
regulations
Customs Law of Malaysia
Malaysia - Rules for Express Customs Clearance
Process participant
Seller of China
Cross-Border E-Commerce Platform
Customs of Malaysia
Malaysian international specialised logistics company
Malaysian Local Warehouse Operator
Input and criteria to
enter/begin the business
process
Chinese sellers entrust Malaysian international specialised Logistics
Company to handle import customs clearance procedures.
Consumer electronic products, are required to obtain SIRIM certification.
Among them, electrical products need to apply for SIRIM certification,
communication equipment products need to apply for MCMC certification.
Activities and associated
documentary requirements
The Chinese seller entrusts the Malaysian international specialised
logistics company to handle the import customs clearance formalities and
synchronises the logistics information to the platform.
The cross-border e-commerce platform receives the logistics
information.
The Malaysian international specialised logistics company accepts the
commission of Chinese sellers, and after the goods arrive at the port of
destination, it will handle the import customs clearance formalities and pay
the tax on behalf of the Chinese sellers.
Malaysian Customs audits the customs declaration information
Malaysian Customs verifies the information of customs declaration and
the goods arriving at the port of destination, if the verification is consistent,
the goods will be released, if the verification is not consistent, the application
will be returned.
Malaysia Customs release, the Malaysian international specialised
logistics company will transfer the goods to the warehouse in the importing
38
country, and synchronised successful information with platform of import
customs clearance information
Malaysian local warehouse operator receives the goods into the
warehouse, waiting for delivery
The platform accepts the successful import customs clearance
information and synchronises it with the Chinese sellers
The Chinese seller receives the import clearance success information
and completes the import clearance procedures
Output and criteria to exit
the business process
After verifying the customs information and the arrival of goods, Malaysian
Customs will release them. Then, a specialised logistics company in Malaysia
will transfer the goods to the warehouse in the importing country.
Average time required to
complete this business
process
About three-five days
39
Core business process 2-7：Specialised logistics
company arrange local postal or courier to deliver goods
FIGURE 2. 20 “SPECIALISED LOGISTICS COMPANY ARRANGE LOCAL POSTAL OR COURIER TO DELIVER GOODS” USE-
CASE DIAGRAM
The use case diagram in Figure shows that the process of “Specialised logistics company arrange local
postal or courier to deliver goods” requires the following participants:
◼ Seller of China
◼ Third party trading platform
◼ Local Malaysian warehouse operators
◼ Third party collection platforms
40
FIGURE 2. 21 “SPECIALISED LOGISTICS COMPANY ARRANGE LOCAL POSTAL OR COURIER TO DELIVER GOODS”
ACTIVITY DIAGRAM
41
TABLE 2. 9 “SPECIALISED LOGISTICS COMPANY ARRANGE LOCAL POSTAL OR COURIER TO DELIVER GOODS”
PROCESS DESCRIPTION
Name of the process area Ship
Name of the business
process
Specialised Logistics Company arrange local postal or courier to deliver
goods
Related laws, rules and
regulations
Customs Law (Malaysia)
Customs Import Control Regulations (Malaysia)
Sales tax on Low Value Goods (LVG)
Process participant
Seller of China
Buyer of Malaysia
Platform
Malaysian International Specialised Logistic Company
Malaysian Local Postal or Courier
Local Warehouse Operator in Malaysia
Input and criteria to
enter/begin the business
process
Chinese sellers sell consumer electronic products in compliance with
Malaysia's regulations and have passed the platform qualification audit and
certification.
The sellers have also prepared the necessary international shipping materials
and comply with relevant regulations.
They are able to find a suitable logistics provider in Malaysia.
Activities and associated
documentary requirements
Chinese Sellers Entrust Malaysian International Specialised Logistics
Company to Deliver consumer electronic products
Malaysian International Specialised Logistics Company accepts sellers'
commission and delivers in Malaysia.
Malaysian International Specialised Logistics Company Synchronises
Local Information
Local Warehouse Operators in Malaysia Receive Local Delivery
Information
Local postal or courier delivery companies in Malaysia receive local
delivery information
42
Malaysian International Specialised Logistics Company Synchronise
Local Malaysian Delivery Information to the Platform
Malaysian International Specialised Logistics Company Updates
Local Delivery Information
Malaysian International Specialised Logistics Company completes
customs clearance and the goods enter the local warehouse in Malaysia.
Malaysia Local Warehouse Receives Goods
Local warehouse operator in Malaysia arranges storage and picking of
goods
Synchronisation of goods out of warehouse and distribution information
by local warehouse operators in Malaysia
Synchronisation of local delivery information of goods by the Platform
Local Malaysian Warehouse Operators Prepare Goods for Departure
from Warehouses
Local Malaysian Postal or Courier Delivery Company Collects Goods
The local Malaysian postal or courier delivery company delivers the
goods to the buyer
Malaysian buyers receive the consumer electronic products
Output and criteria to exit
the business process
Malaysian buyers eventually received consumer electronic products
Average time required to
complete this business
process
About three days
43
Core business process 2-8：Seller arranges return refund
FIGURE 2. 22 “SELLER ARRANGES RETURN REFUND” USE-CASE DIAGRAM
The use case diagram in Figure shows that the process of “Seller arranges return refund” requires the
following participants:
◼ Seller of China
◼ Third party trading platform
◼ Third party collection platforms
◼ Local Malaysian warehouse operators
◼ Local postal or courier delivery company of Malaysia
44
FIGURE 2. 23 “SELLER ARRANGES RETURN REFUND” ACTIVITY DIAGRAM
45
TABLE 2. 10 “SELLER ARRANGES RETURN REFUND” PROCESS DESCRIPTION
Name of the process area Ship
Name of the business
process
Seller arranges return refund
Related laws, rules and
regulations
United Nations Guidelines for Consumer Protection
Consumer protection laws
Local courier regulations
Rules for cross-border e-commerce platforms
Process participant
Seller of China
Third party collection platforms
Customs
Platforms
Local Malaysian warehouse operators
Local Malaysian postal or courier delivery companies
Buyer of Malaysia
Input and criteria to
enter/begin the business
process
The purchaser wishes to return a product for a refund.
Activities and associated
documentary requirements
Buyer confirms return refund
Buyer submits return refund request to the platform
The platform receives the buyer's return refund request
The platform synchronises the buyer's return refund request to the
seller
Seller receives Buyer's Return Refund Request
Seller's comments on Buyer's return refund request
If the seller agrees to the refund, the platform synchronises the
information to the buyer, and the buyer receives the information that the
seller agrees to return the goods for a refund; if the seller refuses, the buyer
initiates the process again
The buyer returns goods
46
The local postal or courier delivery company in Malaysia receives the
information that the buyer need returned the goods for a refund.
Local postal or courier delivery company collects the goods
Local postal or courier delivery company returns the goods to the local
warehouse
Local warehouse operator in Malaysia receives the returned goods
and puts them into storage
The local warehouse operator synchronises the return to warehouse
information to the platform
The platform synchronises the return to warehouse information to the
seller and synchronises the refund information to the third party collection
platform.
The seller receives the return to warehouse information, and the third-
party collection platform accepts the refund instruction and refunds the buyer.
The seller disposes of the returned goods and the buyer receives the
refund.
Seller completes the return refund process
Output and criteria to exit
the business process
Seller receives goods
Buyer receives refund
Average time required to
complete this business
process
Approximately seven days
47
Process Area 3：Pay
FIGURE 2. 24 “PAY” USE-CASE DIAGRAM
For “China's cross-border e-commerce sellers exporting of consumer electronic product to Malaysia”, the
“Payment” process area includes two core business processes. After the Malaysian buyer purchases the
consumer electronic products sold by China’s seller on the cross-border e-commerce platform, the buyer from
Malaysia needs to pay for the order through the third-party trading platform, and the seller can only collect the
payment after the buyer confirms receipt of the goods.
48
Core business process 3-1：Buyer completing payment
on the platform
FIGURE 2. 25 “BUYER COMPLETING PAYMENT ON THE PLATFORM” USE-CASE DIAGRAM
“Seller completing payment on the platform” is the first core business process within the “Payment” process
area, and is also the basic condition for completing the “Payment” process. The use case diagram shown in
Figure indicates the following participants:
◼ Seller of China
◼ Buyer of Malaysia
◼ Third party payment institution
49
FIGURE 2. 26 “BUYER COMPLETING PAYMENT ON THE PLATFORM” ACTIVITY DIAGRAM
50
TABLE 2. 11 “BUYER COMPLETING PAYMENT ON THE PLATFORM PROCESS DESCRIPTION
Name of the process area Pay
Name of the business
process
Buyer completing payment on the platform
Related laws, rules and
regulations
Foreign Exchange Management Regulations (China)
Rules on the supervision and administration of non-bank payment institutions
(China)
Rules on the administration of payment institutions (China)
Measures for the Supervision and Administration of Online Transactions
(China)
Consumer Protection 1999 (Malaysia)
Electronic commerce law (Malaysia)
Consumer Protection (Electronic Trade Transactions) Regulations (Malaysia)
Rules for cross-border e-commerce platforms
Process participant
Cross-Border E-commerce Platform
Buyer of Malaysia
Third Party Payment Institutions
Input and criteria to
enter/begin the business
process
Malaysian buyers obtain a platform buyer account and bind payment
instruments such as bank card account, Alipay, etc. on the platform;
The Third Party Payment Institutions successfully opens an online payment
channel for the Malaysian buyer;
The Malaysian buyer successfully authorised the third Party Payment
Institutions to make online payment for the transaction activity.
Activities and associated
documentary requirements
The Malaysian buyer enters their personal information, including their
name, mobile number, identity card details, place of residence, and place of
receipt. This initiates the request to register the buyer's account on the cross-
border e-commerce platform.
The cross-border e-commerce platform verifies the identity information
of Malaysian buyers, such as face recognition and SMS verification, in
accordance with relevant laws and regulations. After ensuring that the
information provided by the Malaysian buyer is accurate and complies with
51
relevant laws and regulations, the platform approves the buyer's request to
register for a buyer's account. Each buyer's account number is unique.
For smooth subsequent transactions on the cross-border e-commerce
platform, the Malaysian buyer is required to open online payment on the
platform while ensuring information security. Malaysian buyers can authorise
payments on the cross-border e-commerce platform by linking their bank
account and using the bank's online app, or by linking their Alipay/WeChat
account and using the Alipay/WeChat app.
Upon receiving a payment binding request from a Malaysian buyer on a
cross-border e-commerce platform, the third-party payment institution will
verify the buyer's identity information. This may include sending an SMS to
the buyer's registered mobile phone number for verification, confirming the
buyer's identity through facial recognition or by requesting the buyer to enter
their ID card details. Alternatively, fingerprint recognition may be used. The
third-party payment provider will only open the online payment channel for
the buyer once they have verified that the buyer's identity information is
accurate.
After authorising the third-party payment institution to open the online
payment channel of the cross-border e-commerce platform, the Malaysian
buyer will be able to purchase goods directly through the platform's webpage.
The buyer can initiate the order and make online payment without any
hassle.
Once the Malaysian buyer has selected the consumer electronic goods
to be purchased on the cross-border e-commerce platform and placed the
order, they will proceed to the online payment process. The platform will then
synchronise the payment instruction with the third-party payment institution
upon receiving the payment instruction from the buyer.
Upon receiving the payment instruction from the cross-border e-
commerce platform, the third-party payment institution will execute the
buyer's payment instruction only after the Malaysian buyer correctly enters
the payment password or completes face or fingerprint recognition and
confirms their identity information. The buyer will also successfully complete
the online payment for the consumer electronic products through the third-
party payment institution.
Output and criteria to exit
the business process
The buyer of Malaysia complete the activity of " buyer completing the
payment on the platform".
52
The third-party payment Institutions successfully pays for the goods/orders
purchased by the buyer of Malaysia.
Average time required to
complete this business
process
Approximately one day
53
Core business process 3-2：Buyer completes the receipt
of goods and pays the seller
FIGURE 2. 27 “BUYER COMPLETES THE RECEIPT OF GOODS AND PAYS THE SELLER” USE-CASE DIAGRAM
The use case diagram in Figure shows that the process of “Buyer completes the receipt of goods and pays
the seller” requires the following participants:
◼ Seller of China
◼ Buyer of Malaysia
◼ Buyer’s bank
◼ Seller’s bank
54
FIGURE 2. 28 “BUYER COMPLETES THE RECEIPT OF GOODS AND PAYS THE SELLER” ACTIVITY DIAGRAM
55
TABLE 2. 12 “BUYER COMPLETES THE RECEIPT OF GOODS AND PAYS THE SELLER” PROCESS DESCRIPTION
Name of the process area Pay
Name of the business
process
Buyer completes the receipt of goods and pays the seller
Related laws, rules and
regulations
International Rules for the Interpretation of Trade Terms
Rules for cross-border e-commerce platforms
Malaysia Local Post Courier Rules
Process participant
Seller of China
Third party payment institution Seller's bank
Seller’s bank
Platforms
Local Malaysian postal or courier delivery companies
Buyer of Malaysia
Input and criteria to
enter/begin the business
process
Merchandise is successfully shipped from seller to buyer
Activities and associated
documentary requirements
The buyer receives the goods.
The local Malaysian postal or courier delivery company receives the
buyer's receipt information.
The platform updates the buyer's receipt information.
The buyer determines whether to return the goods for a refund.
If the buyer needs to return the goods, they enter the return and
exchange process. If they do not need to return the goods, the buyer
confirms the receipt of the goods and evaluates the goods and service.
The platform updates the buyer's confirmation of receipt information.
The platform synchronises the buyer's confirmation of receipt
information.
The third-party payment institution transfers the payment for the goods
to the seller's bank.
The seller's bank receives payment for the goods.
56
The seller receives payment from the bank.
The buyer completes the receipt of goods and payment to the seller.
Output and criteria to exit
the business process
Buyer receives goods
Seller receives refund
Average time required to
complete this business
process
Approximately seven days
Time for import
Figure 29 and Table summarises the average time required for completing each trade procedure. It shows
that in total, it takes approximately days to complete all the procedures. The procedure requiring most of
the time is the seller’s formalities for export from Chile which takes 10 days. Delivery of goods from the bonded
warehouse to the buyers takes 7 days.
FIGURE 2. 29 TIME PROCEDURE CHART OF THE WHOLE BUSINESS PROCESS
0
10
20
30
40
50
60
70
D
a
ys
Procedures
57
TABLE 2. 13 TIME REQUIRED FOR VARIOUS BUSINESS PROCESS
Business process
Time required
min max average
Place on the platform Showcase products on video 2
Conclusion of Transactions on the Platform 2
Sellers register to open a shop on the platform 7
Sellers bind the collection platform on the platform 2
Sellers listing products on the platform 3
Seller arranges dispatch
Seller's formalities for export from Chile 10
Sellers entrust the platform to handle China's import customs filing
procedures
2
Seller's goods enter China's bonded warehouse 2 5 4
Platform assists in customs clearance for e-tailing imports 1 3 2
The goods stored in the bonded warehouse were sent to the buyers 7
Seller arranges return refund 7
Buyer completes payment on the platform 1
The buyer completes the receipt of goods and pays the seller 7
58
Chapter 3. Recommendations
and Conclusion
Cross-border e-commerce allows global SMEs to sell their products directly to overseas consumers through
cross-border e-commerce platforms, which has fragmented trade. This has opened up trade opportunities for
global SMEs. But cross-border e-commerce poses challenges for government regulation and trade process
optimization. The following trade process optimization, regulation, and compliance processes all deserve further
attention and discussion:
(1) Cross-border e-commerce allows global buyers and sellers to conclude transactions online. However, for
different situations of cross-border e-commerce, sellers may have many different delivery methods. Some
delivery methods may involve sending small packages directly through the post, others may involve courier
logistics directly delivering to overseas consumers, additionally there may also be the bulk consolidation of
goods in overseas warehouses located in the target market, which then deliver to local consumers. Depending
on the value of the product, it may also be delivered by air, or by sea, or by land, or even using different
combinations of different modes of transport. This all adds to the challenges of product delivery for cross-border
e-commerce sellers.
(2) Fragmented trade also makes government regulation of cross-border e-commerce trade difficult. The large
number of parcels increases the difficulty and cost of trade regulation, and also creates problems of trade
regulation efficiency. The International Customs Organization (ICO) has introduced a standard regulatory
framework for cross-border e-commerce, which is used to guide government trade regulators to improve the
regulatory process for trade.
Countries may not have a well-established process system for the regulation of small parcel logistics. Various
commodity customs supervision processes for personal effects or consumer goods, as well as inspection and
quarantine compliance processes, are compliance challenges for companies to navigate.
(3) In countries where e-commerce goods are exported, there is still a lot of room for improvement in terms of
how to obtain synergies between the various national trade regulators and how to make transparent and clear
regulatory processes available to e-commerce exporters. In countries where e-commerce goods are imported,
various aspects of the process, such as how to harmonize the relationship between cross-border e-commerce
companies and local retailers, and how to meet local tax compliance requirements, are still being discussed
and explored.
(4) Cross-border e-commerce differs from general international trade in that it involves the ultimate consumer;
that is, one who consumes goods to satisfy personal wants and needs rather than to resell. Therefore, cross-
59
border e-commerce directly involves the protection of the rights and interests of final consumers. Especially for
personal consumer goods in cross-border e-commerce, there are not many cases where the final consumer
chooses to return the goods. This involves using the rules of the platform in various ways to improve the
regulatory process of cross-border e-commerce to meet consumer protection requirements. The report has also
noted the issue of customs clearance for exports and imports in international dedicated logistics in the cross-
border e-commerce export process from China to Malaysia. The issue of how Chinese SMEs can achieve cross-
border e-commerce export compliance, and the issues further optimization and adjustment, also deserves
attention.
To overcome cross-border e-commerce process challenges, the following recommendations are provided in the
report.
(1) Clarify regulatory processes and utilize IT to improve efficiency
Government regulators of various countries should actively explore reasonable cross-border e-commerce
facilitation processes and try to utilize IT and big data to enhance the efficiency of trade regulation. Cross-border
e-commerce provides global business opportunities for small and medium-sized enterprises (SMEs) and even
individuals, but at the same time, compliance and facilitation have always been the two most troubling aspects
of cross-border e-commerce development for these enterprises and individuals. The government should make
the compliance and regulatory process clear and unambiguous, and provide a convenient trade channel for
more enterprises and compliant products.
(2) Promoting the interoperability of regulatory information systems among countries
The main role of cross-border e-commerce platforms is to provide information aggregation and integration.
Connectivity and interoperability between the information systems of regulatory authorities in each country is
challenging. This is because there are always security concerns and conflicting interests between
administrations. Yet the integration of information on the platform can maximize the optimization of processes
and even change and save many actions that are complex and repetitive. Platforms for integrated cross-border
e-commerce services can provide interoperability of information systems between regulatory authorities in
different countries, for example, a one-time data submission through a third-party service platform can meet the
compliance requirements of customs in the importing or exporting country.
(3) Explore embedded regulatory processes
In the past, trade process regulation was characterised by each department operating independently, thus
making coordination between each department difficult. Although cross-border e-commerce has a relatively
complex type of trade process, its trade-specific network and digital process makes the integration of regulation
possible. For example, this can be embedded in the government regulatory process for business, and in turn
achieve cross-border e-commerce trade facilitation.
60
(4) Government regulators and actively cooperate with platforms, logistics and payment organizations
to explore the regulatory model of PPP.
The PPP model is a social management model in which the public sector cooperates with the private sector.
Usually third-party cross-border e-commerce service platforms belong to the private sector. Third-party service
platforms play a crucial role in global cross-border e-commerce business processes, and these platforms
include trading platforms, logistics platforms, and payment platforms, among others. The government's
regulation of trade compliance should give more consideration to the role of these platforms, explore the PPP
regulatory model, and actively cooperate with these platforms to form rules and governance mechanisms with
balanced and reciprocal responsibilities and rights.
(5) Exploration of mutual recognition of the identification of market players between countries
Enterprises and individuals engaged in cross-border e-commerce are diverse and complex. How to establish a
cross-border trust mechanism to prevent cyber fraud and guard against business risks is also a major concern
for consumers. The cross-border extension of credit systems in various countries should be actively promoted.
Mutual recognition mechanisms for the authentication of market entities between different countries should be
actively explored.
(6) Explore mutual recognition of product quality financing and standards between countries
Cross-border e-commerce is characterised by a wide range of goods, in particular, consumers' increasing
demand for new products, gap market products, and even personalized products. The traditional market
regulation process, which often targets bulk goods and products with stable supply, is relatively complex and
lengthy, and the application for sales qualification by enterprises is often time-consuming and involves high
costs. National regulators should negotiate trade agreements to recognize each other's product quality
qualifications and standards. For individual consumers, cross-border e-commerce products that are highly
personalized should be given safe passage through the regulatory process.
(7) Focusing on global consumer protection, improving trade processes and providing consumers with
convenient processes and channels to exercise their rights and interests.
Cross-border e-commerce raises the question of global consumer protection. In case of Chinese cross-border
e-commerce exporting consumer electronic products to Malaysia, the consumer protection issue. Consumer
protection relies on reasonable processes and methods of mediation and arbitration under the rules of third-
party platforms, while at the same time, trade regulation processes need to support a reasonable return and
refund process. Chinese customs and logistics companies have worked out a preliminary general process for
cross-border e-commerce returns and refunds. There is still room for improvement in supporting cross-border
e-commerce enterprises to return taxes in a compliant manner and other aspects.
61
TABLE 3. 1 DIAGNOSIS OF BOTTLENECKS AND RECOMMENDATIONS FOR STREAMLINING TRADE PROCESSES
Sl Core
business process
(Use-case)
Observations Recommendations
Procedural
Requirements
Data and
Documentary
Requirements
Transparency
/
Predictability
1. Buy
Place on the
platform/Showcase
products on video
This step is the
one where sellers
can apply and get
permission for live
streaming and
video display of
their goods on the
platform. In some
countries, such as
China, platforms
for cross-border
e-commerce have
stricter rules for
live streaming for
sellers. Sellers
often need to
make a separate
application if they
want to go live
after getting
permission to
open a store.
Sellers need to
fulfill some
conditions before
they can open live
broadcasting.
Currently web
video display is a
more popular and
popular way of
online
marketplace
transactions for
cross-border e-
commerce in
Southeast Asia.
The platforms
generally
qualify the
bloggers that
the sellers
broadcast live
as well.
Therefore,
sellers need to
register the
blogger's
information
with the
platform. In
addition, the
seller may also
need to
provide some
other
conditions for
opening a live
broadcast,
such as having
a certain
number of
followers and
meeting the
basic facility
conditions for
opening a live
broadcast, to
meet the
requirements
for opening a
live broadcast
on the
platform.
Conclusion of
transactions on the
platform
This step is a
process whereby
the seller of a
cross-border e-
commerce
This process
mainly
involves the
submission of
the relevant
62
Sl Core
business process
(Use-case)
Observations Recommendations
Procedural
Requirements
Data and
Documentary
Requirements
Transparency
/
Predictability
platform displays
the terms of the
transaction, which
are accepted by
the buyer, and the
transaction is
concluded. This
process conforms
to the legal
validity of the
contract of sale.
The transaction
conditions
displayed by the
seller are the offer
for the formation
of the contract,
and the buyer
clicking online to
accept the buyer's
conditions is the
promise. The
platform will allow
the seller to post
the terms of the
transaction on the
platform in
accordance with
the requirements
of the law. The
buyer accepts
these conditions
by clicking accept.
transaction
data of the
platform seller,
which should
comply with
the transaction
conditions
stipulated by
the platform.
Generally,
there is no
substantial
difference
between
countries in
terms of the
conditions
under which
the sale
contract
comes into
effect. In
addition to
standardized
contractual
conditions,
sellers may
make other
commitments,
such as local
services or
additional
services and
product
guarantees,
etc.,
depending on
the information
exchanged
and stored on
the platform
between the
buyer and
seller. The
data and
information
saved on
63
Sl Core
business process
(Use-case)
Observations Recommendations
Procedural
Requirements
Data and
Documentary
Requirements
Transparency
/
Predictability
these
platforms can
automatically
generate order
information
that can be
used as a
basis for future
fulfilment or
dispute
resolution.
2. Ship
Seller register to
open shops on the
platform
This is an
important process
for a cross-border
e-commerce
seller to be able
to open a store
and display their
goods on the
platform. This
process is also a
very important
step for sellers to
enter into a
transaction. The
premise of this
step is that the
platform verifies
the information
about the seller
that can prove the
seller's identity, as
well as verifying
the seller's
qualification to be
able to sell
products on the
platform.
Therefore, in
order to ensure
the security and
reliability of the
transaction, this
step also includes
the process of
This step
requires the
submission of
relevant data
and
documents in
compliance
with the
requirements
of the law and
platform rules.
Sellers are
required to
upload
relevant
identification
and contact
information,
including cell
phone
numbers. The
seller is also
required to
provide some
other verifiable
information
that can
confirm his
identity. If the
seller is a legal
entity, he also
needs to
submit
information
At present, China's
trade regulations do not
have too many
restrictions on cross-
border e-commerce
exports, and in
accordance with
China's e-commerce
law, the general
requirements to open a
store on an e-
commerce platform is
that sellers need to
have enterprise
qualifications, and only
need to provide a
business license, and
no longer need to be
filed and approved by
the government
regulatory authorities.
This greatly facilitates
small and medium-
sized sellers in the
global e-commerce
platform for cross-
border e-commerce
sales of products to
overseas consumers.
However, enterprises
engaged in cross-
border e-commerce are
diverse and complex.
How to establish a
64
Sl Core
business process
(Use-case)
Observations Recommendations
Procedural
Requirements
Data and
Documentary
Requirements
Transparency
/
Predictability
verifying the
identity of the
seller. Since the
registration is
done on an online
platform, the
process of
submitting data
and information
online requires a
certain amount of
formality, and the
platform also
requires some IT
means of identity
verification, even
if the platform
needs to utilize
third-party data
for verification.
The key to this
step is to verify
the legitimacy of
the subject of the
transaction and
the compliance of
the traded goods.
about the
relevant
supporting
documents of
the company's
legal person,
such as the
business
license of the
enterprise. In
addition, the
seller also
needs to
provide
information
about the
goods and
relevant brand
authorization
information
after opening
the store to
guarantee the
legitimacy of
the traded
goods. In
some cases,
the platform
also requires
the seller to
have some
specific
conditions in
order to
display and
broadcast the
video.
cross-border trust
mechanism to prevent
online fraud and guard
against business risks
is also a major concern
for consumers. It is
recommended to
actively promote the
cross-border extension
of credit systems in
various countries.
Actively explore the
mutual recognition
mechanism for the
authentication of
market entities between
different countries.
Seller bind
collection accounts
on the platform
The platform
seller binds the
third-party
payment
collection tool
platform through
the platform. This
process is a
critical step,
mainly used after
Sellers who
bind payment
tools to collect
payments are
often asked to
provide
various
registration
information,
including some
65
Sl Core
business process
(Use-case)
Observations Recommendations
Procedural
Requirements
Data and
Documentary
Requirements
Transparency
/
Predictability
the order is
closed, the seller
can get the
money for the
goods sold
through the third-
party payment
tool. Sellers
choice of binding
payment tools
often depends on
the nature of the
sellers identity.
The seller can be
an individual
registered to
receive payments
account, they
could also be a
corporate
organization.
Often platforms
will require that
the binding
collection account
must belong to an
individual located
in the same
country as the
selling
marketplace.
qualification
certificates,
such as the
business
license of the
enterprise
legal person,
bank account
information
and so on. The
payment
platform needs
to verify the
relevant
information.
Since the
payment is
operated by an
individual
online, it may
be necessary
to authorize
the person
who is
specifically
operating the
payment and
to verify and
validate the
identity.
Seller listing
product
information on the
platform
Platform sellers
need to fulfill the
process set out by
the platform to put
their products on
the shelves. This
process is very
important. These
steps should be
sufficient to
ensure that the
products that the
seller intends to
trade meet the
compliance
requirements, and
Sellers are
usually
required to
provide
documentation
such as
trademarks
and brand
registrations
for their goods.
If the brand of
the product
being sold is
not owned by
the seller, the
seller will also
These step-by-
step
requirements
and processes
are available
on the trading
platform. This
procedure is
fully
transparent
and
predictable.
Getting product
qualification certified
locally in the country
where it is sold is a
more challenging task
for sellers of cross-
border e-commerce.
This is because it
involves a more
complex product
certification process. In
particular, sellers are
typically not familiar
with the product
certification process in
the importing country.
66
Sl Core
business process
(Use-case)
Observations Recommendations
Procedural
Requirements
Data and
Documentary
Requirements
Transparency
/
Predictability
that there are no
prohibited
products, or
products that
infringe on
intellectual
property rights. All
products sold by
sellers need to be
reviewed by the
trading platform.
In addition, the
information and
image markings
of the products on
the shelves need
to meet the
platform's
compliance
requirements.
Consumer
electronic
products on the
trading platform
generally do not
require the
products to meet
the requirements
of the local
product
certification.
However, some
products, such as
electrical
appliances or
communication
products that
require access to
local network
services, may
require sellers to
obtain product
qualification
certification from
product
certification
organizations in
need to obtain
information
such as a
brand
authorization
letter from the
brand owner.
Some
consumer
electronic
products
require the
buyer to
provide the
quali
